Dow AgroSciences, Monsanto cross-license corn traits
Kaehler explained that with approval of the Enlist Weed Control System, as anticipated, Dow AgroSciences’ brands of seed will offer SmartStax plus Enlist Technology for 2014 planting. The full next-generation SmartStax with the Enlist Technology and Monsanto Corn Rootworm III will likely not be available until the end of the decade.
“What we’ve seen is that the growers are picking the hybrids that have more technology in them. They are the fastest growing component of the marketplace. We see the demand being in that area, and that is where we focus some of our research efforts and bring out products to meet that demand,” Kaehler said.
“What we’ve decided to do instead of always trying to develop new products on our own is work with other technology providers in the industry. While we are paying a royalty back and forth to each other, we are avoiding some of the R&D costs that would have been involved to bring new products like this to the marketplace. We look for new products in our R&D pipeline, and we have a tremendous pipeline of products in the market, but that doesn’t mean we won’t look for other technologies that can complement ours and work together between technology providers. We do both things; we look to do it ourselves, and we look to collaborate with others,” Kaehler explained.
Monsanto and Dow AgroSciences highlighted in bullet point what the agreements include:
- Monsanto and Dow AgroSciences will license to each other, under royalty-bearing agreements, traits for weed control as well as insect protection in corn. Specifically:
- Dow AgroSciences will license to Monsanto its proprietary Enlist corn herbicide-tolerant trait on a non-exclusive basis.
- Monsanto will license to Dow its third generation corn rootworm technology, Corn Rootworm III, on a non-exclusive basis.
- The agreement paves the way for U.S. introduction (pending regulatory approvals) of new, next-generation SmartStax products by the end of the decade.
- Monsanto will represent both parties for joint third-party licensing of the next-generation SmartStax corn to third-party seed companies through its Corn States business, allowing farmers access to cutting edge technology in the brands they prefer.
- Dow AgroSciences will out-license the rights to the Enlist trait technology.
- Both parties will retain the right to independently stack additional trait technologies.